Weekly Update

Dow (25,339)

Dow is forming an expanding A-B-C wave 8 after setting several new record highs by its wave B (very tricky). The rebound on Friday after two days of sharp drop is likely to be the first candlestick of wave ii of C. Be careful of the sharp wave iii's plunge once wave ii is completed.

FBMKLCI (1,730)

In tandem with the Dow, KLCI plunged for two days followed by a technical rebound on Friday. Sub-wave iii is expected to drop another 100 points before its sub-wave iv's rebound.

Inari Amertron Bhd (Rm2.19)

The main question for Inari is whether it has completed its major wave 9. If wave 9 has been completed then it has started forming its mega wave (2).

If major wave 9 has yet to be completed, Inari will have to complete its wave (iii), (iv) and (v) during the two to three months short period when KLCI is having its sub-wave iv rebound.

Insas Bhd (Rm0.80)

I am still maintaining my wave count for Insas that it still has a mega wave (5) to be completed and that currently its is forming its major wave 5. If mega wave (5) can have a similar gain of 200% as that of mega wave (1) and (3), the target is Rm1.80.

Can Insas complete its wave (iii), (iv) and (v) within a short span of two to three months when KLCI is having its sub-wave iv rebound?

Fundamentally Insas has the capability of doing so. Its net assets is Rm2.49 per share. It has positive earning every year. Its average earning for the last 5 years is 17 sens a share. At Rm1.80 its PE is only 10.5.

Its jewel is its 19% holding (600 million shares) of Inari. The total number of Insas share is only 663 million, that give 0.9 Inari share per Insas share. For Inari at Rm2.19, that 0.9 share is worth Rm1.97. All we need is a sudden announcement of bonus issue of Inari share to Insas shareholders. It is all up to the major shareholder Thong Kok Khee's game plan. Within seconds Insas can reach Rm1.80 with a bonus issue announcement.

If running short of time, Insas may end at its 2014's high of Rm1.32 to form a 'double-top' reversal pattern to complete its super wave I.

.